R E G I O N A L U P D AT E
R E G I O N A L U P D AT E
Latin America CARLOS CORTES SIMON Executive Chairman At Asociacion De Empresas De Gas Natural and IGU Regional Coordinator
Argentina
The imbalance in the Argentine market prompted the
Methane programme, focused on incentivising the
government to launch the construction of a new large gas
utilisation of agricultural and other organic waste for
pipeline from the Neuquen basin to Buenos Aires. The first
the production of biogas and biomethane. Several such
The LNG that supplies the Chilean market is mainly
stage is intended to be in operation by winter 2023.
projects have been developed, with some requiring
delivered under long-term contracts, which has
access to natural gas transport networks, which means
allowed the country, despite the high global spot
the same quality standards must be assured.
prices, to maintain the competitiveness of natural
Brazil Gas production in Brazil has continued to increase, reaching 136 mcm per day in April 2022 versus 131.4 mcm per day in the same month last year. Some 87% of this supply is
versus 49% for LNG imports.)
gas in the domestic market, in spite of the volatility in Green hydrogen and ammonia projects have been
international markets.
announced at Porto de Pecem in the northeast
offshore associated gas.
and Porto do Acu in the southeast. The national
While a new government assumed office in March
development of these fuels will require a sharp
of this year, continuity in Chile’s energy policy is
Domestic consumption averaged 75 mcm per day in
increase in renewable energy capacity.
expected, with a focus on how the country can achieve carbon neutrality by 2050 as well as intermediate
Development of shale gas from the Vaca Muerta basin
January-March 2022, down from a peak of 105 mcm per
has improved in productivity and development costs, and
day in October last year when a severe drought meant that
producers are investing in new treatment capacity to increase
gas-fired power generation was in greater demand.
Colombia is one of the greatest examples in the region
generation, in order to fully phase out the latter fuel by
of widespread gasification, with supply now available
no later than 2040.
the immediate target and they have the potential to increase,
To supplement domestic supply, Brazil imports gas from
to 80% of the population, or 36mn users. Colombia’s
especially during the off-winter months.
Bolivia by pipeline and LNG from international suppliers
deliveries in the next few years. Exports of gas to Chile are
(there are currently five LNG terminals in operation – all Gas demand has recovered strongly in important market
FSRUs – and one in construction and another three planned
segments, with industrial gas demand even recovering to
for 2024-2025). Due to high water levels at hydropower
pre-pandemic levels. But demand for CNG for vehicles
reservoirs following a rainy period, the regasification of LNG
remains below the 2019 level. There was higher gas demand
goals in 2030. Gas will help replace coal in electricity
main gas demand comes from industrial customers
Natural gas will also continue to provide flexibility
followed by residential clients.
to variable renewable energies that are being incorporated into the country’s electricity mix at a
In June 2022, Gustavo Petro was elected as
rate that exceeds even the most favourable forecasts.
Colombia’s new president, hailing from the hard
During January-May 2022, natural gas represented
hit a new low of 5.3 mcmpd in March 2022.
left. It is expected that he will move the country in
19.1% of electricity generation.
Bolivia unilaterally cut exports to Brazil by 30% in May 2022,
coal and all mining operations in the next 20 years.
the direction of eliminating dependence on oil, gas,
from residential and commercial markets in May and June due to cold weather.
Colombia
diverting the volumes to Argentina, which is willing to pay
Trinidad & Tobago
He seeks to prohibit new exploration permits in the
Several upstream gas developments are expected to
extractive industry, while preserving contracts that
commence gas production in 2022 to meet existing domestic and LNG contractual commitments. Despite
Demand at thermal power plants reached record levels
higher prices (up to $20 per mmBtu) during the May-August
in early 2022, because of drought that severely impeded
winter period.
have already been signed. However, the president’s agenda will probably not dramatically affect the
this extra supply coming on stream, Trinidad and
Petrobras expects to complete the construction of the Route
natural gas sector, as it remains crucial for the energy
Tobago’s total gas supply still falls short of LNG and
transition in Colombia.
domestic demand, thus paving the way for the country
Argentina’s hydroelectric capacity. As winter gas demand exceeds the current production levels,
3 offshore pipeline in the second half of 2022, enabling the
large imports of LNG are still required. Imports of LNG at
supply of 18 mcm per day of extra domestic gas.
record-high prices averaging $35 per mmBtu in May and June 2022, impacted the Central Bank reserves. Despite
The Gas Law that was sanctioned in April 2021, coupled
these imports, consumption of diesel and residual oil for
with Petrobras’ asset divestment programme, has created
power generation has increased significantly compared to
a more dynamic Brazilian gas market with new private
2021.
players and investors entering all segments of the gas value chain. January 1 2022 marked the opening of an effective
Operators in the Neuquen basin were able to maintain and
gas market in Brazil, with eight new supply contracts
even increase gas production during last winter, following
signed between suppliers, consumers and local distribution
the government’s introduction of an incentives programme
companies. The federal government issued CNPE Resolution
in December 2020. By May 2022, gas supply had filled
3/2022 on April 7, 2022, providing further guidelines on the
available transport capacity for domestic markets, and some
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G LO B A L VO I C E O F G A S
Ecopetrol, Colombia’s leading oil and gas company, is set to take a leadership role in the energy transition. It
Regarding the development of low-carbon gases,
will be in charge of supplying the country with oil and
French specialist Hydrogene de France SA acquired
gas from existing deposits over the next 15 years, and
a 70% interest in the NewGen low-carbon hydrogen
developing new low-carbon sources of energy such as
development in Trinidad and Tobago.
hydrogen and green gases.
Chile
Trinidad and Tobago’s national gas company NGC submitted its first Oil and Gas Methane Partnership
Chile covered around 70% of its gas consumption with
(OGMP) report for 2021 on May 31, 2022. The
LNG imports in 2021, and a further 15% with pipeline
country’s energy minister Stuart Young met with US
transition to a more open and competitive market.
imports from Argentina. In the first five months of
special envoy for climate, John Kerry, on June 8, and
2022, Argentine gas imports accounted for a higher
discussed its agreement to sign the Global Methane
In March 2022, the federal government launched the Zero
share of supply in the country’s central part (51%
Pledge.
interruptible gas exports to central Chile via the GasAndes and Gasoducto del Pacifico pipelines was possible.
to secure gas from Venezuela, subject to US sanctions.
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